11 November 2008

Rees Government confirms health a key priority

Healthcare for NSW families remains the top spending priority of the Rees Government after today's NSW Mini-Budget.

Health Minister John Della Bosca said the NSW public health system would continue to offer universal and high quality care in tough economic times.

"Like all other agencies, Health must seek further efficiencies in the way it delivers services," Mr Della Bosca said.

"This Mini-Budget takes responsibility and sets a new path forward for NSW.

"Our nation has an ageing population, increasing hospital presentations and health costs running well ahead of inflation.

"The Rees Government is meeting this challenge with a massive continuing investment in public health, changes to the way we deliver services and a focus on quality patient care.

"There has been no change to the health service budget allocation," Mr Della Bosca said.

The Mini-Budget review has identified $125.9 million in revenue opportunities, internal efficiencies and productivity improvements in 2008-09 in order to maintain health services in the face of rising demand.

These measures will continue to be implemented across a five year timeframe, and will include:

• Increased efficiencies in procurement of medical equipment, pharmacy supplies and goods and services through greater standardisation and bulk-buying arrangements ($9.6 million over four years)
• Reducing reliance on overtime and the higher costs of the non-permanent workforce, including centralised and standardised management of locums across all Area Health Services and other local savings strategies ($68 million in 2008-09)
• Updating fees charged to private specialists accessing public health infrastructure to better reflect the cost of state-provided equipment and support services ($7.5 million in 2008-09)
• Improve and standardise use of best practice for billing of private patients ($40 million in 2008-09)
• Streamline administration and share asset maintenance, corporate services and clinical support networks between Sydney South West Area Health Service and Greater Western Area Health Service and between Sydney West Area Health Service and the Children's Hospital Westmead ($3 million in 2008-09)
• Ending subsidies from NSW Health to private hospitals for the cost of providing blood and blood products ($26 million in 2008-09)

Subject to discussions with the Commonwealth regarding national infrastructure funds, some capital projects may be deferred and others brought forward to ensure the planned program is realistic and deliverable within existing resources.

However, the Government remains committed to meeting existing timeframes in major projects already in progress including Liverpool Hospital, the new Royal North Shore Hospital, Orange Hospital and the Mater in Newcastle.

"The decision to continue these major projects in difficult economic times is evidence of the Rees Government's continuing commitment to invest in vital health infrastructure," Mr Della Bosca said.

NSW will also seek additional infrastructure support from the Commonwealth Government and an increase in the Commonwealth's share of funding for NSW public hospitals would be a key part of Commonwealth-State negotiations at COAG.

"Health expenditures are rising by more than nine per cent per year, compared to a CPI rate of three percent," the Minister said.

"That presents a clear fiscal challenge for all Governments and a compelling case for the Commonwealth to restore its share of public health funding to pre-Howard levels.

"Throughout this process, the Government has endeavoured to make savings in back office areas and in ways that minimise the effect on patients.

"The Rees Government is working very hard to use the available resources to deliver safe, high quality health services to the largest number of people we can."

For a range of health information, go online to www.health.nsw.gov.au